Star Entertainment Group FY22 half-year results show domestic revenue improving as loss increases to $
Star Entertainment Group has widened its half-year loss to $73.7 million from $51.2 million a year earlier, as pandemic-induced shutdowns continued to bite.
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Star Entertainment Group has widened its half-year loss to $73.7 million from $51.2 million a year earlier, as pandemic-induced shutdowns continued to bite.
In its half-year results released Thursday, The Star said it would not pay a dividend for the six months to December 31, as earnings before significant items fell 87 per cent, to $31m.
There were glimmers of light among the losses, with non-gaming revenue up 10 per cent overall and 35 per cent on the Gold Coast; with the Dorsett launching successfully and pre-sales on tower two of its Broadbeach Island residential development already at 92 per cent.
The bottom line was further boosted by the sale of the company’s $40m VIP jet.
Chairman John O’Neill AO said the group continued to push through despite ongoing Covid-related challenges.
“The fundamental earnings prospects for The Star’s domestic business remain attractive,” he said.
“They are underpinned by valuable long-term licences in compelling locations while the transformation of our properties into globally competitive integrated resorts is nearing completion.
“The Star remains committed to maintaining a balance sheet that positions the Group for the post COVID-19 recovery.”
Billions of dollars in international high-roller turnover to The Star dried up virtually overnight in 2020, at a time when the was pouring billions of dollars into new hotels and residential towers.
The sector, already threatened by tightening Chinese restrictions on its wealthy residents, has been walloped by pandemic-prompted border closures ever since.
The Star said its priorities for the coming year were co-operating with Austrac’s investigation into its money-handling processes while progressing with asset sales and its Gold Coast tower developments.
Managing director and chief executive officer Matt Bekier said the company’s responses to Covid had ultimately kept staff and customers safe.
“The past year has demonstrated how resilient our business is and how quickly customers return when the properties are allowed to open and operate under varying forms of restrictions,” he said.
“This gives us great confidence as vaccination levels increase and a return to normality approaches.”
Star apologises for underpaying staff
February 7: Star Entertainment Group has apologised and vowed to repay the wages of an unknown number of staff who have been underpaid by at least $13m.
In a statement to the ASX on Monday, the casino operator said it had identified underpayments “to certain current and former salaried team members”.
“The underpayment has been identified through a six-year retrospective wage review of salaried team members underpinned by modern awards,” the company said.
“In some cases, team members were found to not be ‘better off overall’ as the annual salary was not sufficient to compensate the team member for their equivalent award entitlements such as overtime and penalty rates.”
Star said it had about 2200 staff on annual salaries during the review period and that it would allow $13m for repayments in the first half of this financial year.
The provision includes estimated back payments, interest and superannuation contributions.
The Star’s workforce was paid approximately $3.3 billion across the same six-year period.
The Star has informed the Fair Work Ombudsman and the United Workers Union and said it had improved its processes, systems and training and has a plan in place to ensure salaried team members’ pay was correct moving forward.
The Star’s MD & CEO Matt Bekier said the group was sorry.
“We apologise to any team member impacted by the payment shortfall and we are committed to doing the right thing by acting transparently,” he said.
“Our priority is to address this issue and to ensure that it doesn’t happen again.”
The United Workers Union was notified of an audit undertaken by Star Entertainment group last week but is unaware of the detail or the scale of the underpayments.
The union understands that the wage underpayments have primarily affected workers not covered by the union-bargained enterprise agreement.
The union also understands the underpayments are centred around salaried employees earning less than the minimums contained within the Hospitality Award.
“We expect that the company will quickly rectify the issue for all workers and if any of our members are impacted that any moneys owed are repaid quickly and in full,”
United Workers Union casinos deputy director Imogen Beynon said.
“We know from this example and many others that incidences of wage theft and underpayments are reduced when people are covered by a union agreement.
“This situation has also brought to light the issues surrounding many companies’ over-reliance on salaries which fall short of the relevant award.”
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